Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 28

Refer to the information in 17-15. Calculate the estimated total cost when the measured quality characteristic, x (e.g., circumference, measured in inches), is 78.
Reference:
Solidtronic, Inc., an OEM manufacturer, has a product specification of 75 + /- 5. The cost for warranty services is estimated as $500 per unit. What is the value of k, the cost coefficient, in the Taguchi loss function for this situation